When to Invest? Now, When Everyone Is Afraid to

History suggests this is no time to be on the sidelines in the market, says Chuck Jaffe on The News Hub. (Photo: Getty Images)

This transcript has been automatically generated and may not be 100% accurate.

... the the ... just to see if all the stocks that we sang a new calling ... I would say this could really fun to be faithful spots we seem to massive one ... of the last fifteen years or so that the tech bubble and easily the two thousand and eight crash ... you know one of the staff ... while being scared is fine and it's not that you should be throwing everything into stocks right now me truthfully should be doing in a while ago ... and not removing yourself from the market after the financial crisis into thousandeight ... what's been happening in the study released earlier this week from Bankrate ... that basically said more than ... three out of for investors ... really are less inclined there they're circling no more inclined to invest in stocks now with the market at all-time highs and mind you ... the Fed is basically daring you to invest in stocks it's telling you ... your Guinea get virtually nothing ... on her savings accounts or CDs anything it is read Related ... Heard daring you invest in stocks and investors still are doing ... but here's the problem got reached turned on its head ... you worried about risk ... and what it means if your portfolio to seek short term loss right now ... what ... all this time you're using an earning power over the long haul ... and ultimately ... your one death with a massive shortfall Mr. not soon enough anyway overall the study say we're not sitting on a lot less of an evening in the people want to sign on getting the baton because an ongoing interest money has prompted people ... remember ... two thousand and nine when they opened up but for one K and it was at ninety nine K ... because of the trunk so much ... and a lot of it was like hell when you know I know one of its parent's family dad I've I've thought back to my wrist you saying ... that the point I wasn't paid but they just is too much ... well ... if they simply dial it back and came to an asset allocation that is savvy in smartphone ... what what we've seen is that the dial it back they said I can take the pain anymore I'm out ... and out there on the sidelines and stay out and worse yet ... as the market continues to go higher ... they're basically trapped on the sidelines or some such thing as a good time to get into the market that can attract they're ... there to push the market higher than in the first sign of trouble ... no one thought I just got in now the troubles coming of outing and there's no one to buying high and sales of seventy seven Thomas a suitable asset allocation let's let's imagine somebody fifty years old I'm would put some money and therefore a one k or IRA or ... maybe not and not just in in in the bank ... how should they allocate that to two stalks two phones to go well obviously it's can depend on overriding things including responds gold question will do that ... quickly I had a column recently looked at the roll call on gold which was always five to ten percent of the pitiful ... is you can only do that if ... you have the risk tolerance for to live with that so here's the test that when ... you say ... gold where it's been ... plunging ... can I buy in right now and rebalance because of the money into gold when it's cheap ... you can ride it you're always can have terrible time so ... if you can't do it well then ... don't do the allocation of gold just ... live without could quickly on the stocks ... you are down one at least fifty percent and probably more likely sixty to seventy percent but it's going to depend on what kind of assets are dealing with Tim O'Connor turned to me to do ... and then he won a diversified not just domestic but internationally emerging markets in the hallway ... diversifying your risk is hard to accept more risk and are able to to get the returns you want ... great stuff was one of ... Chuck Jaffe told MarketWatch he read the column on MarketWatch dot com